The SpaceX IPO generated over $170 billion value traded in the company’s shares in a single session on 12 June - over double the value of the capital raised by the company. This was 34% more than the entire MAG 7 daily average combined over the last three and a half years ($127 billion) and 1.9x the daily average for the entire European equity market ($92 billion) for the same period. It beat the previous record for a single stock set by NVIDIA on 28 May 2024 ($147 billion), which was driven by significant outperformance on Q1 earnings expectations. SpaceX beat that by 16.1% on a float of just 5% of total company value.
After 5 trading days, SpaceX ADVT had fallen below $30 billion, reaching a low of $9.5 billion on 25 June.
This story is relevant to portfolio managers and traders alike. There are short and long term impacts on liquidity across the market which will affect both passive and active investment performance and total expense ratios over the coming months.
Figure 1 shows the magnitude of the volumes generated by the SpaceX IPO over the first two weeks of trading, within the context of the broader US and European Equity market’s most liquid names. Average Daily Value Traded (ADVT) jumped 32% across the categories shown versus YTD up to IPO day. It is striking that the market share for the MAG7 in the over the period fell by over 17% from its baseline YTD figure after the IPO, a sign of the volatility which has accompanied the SpaceX launch.